[UK] Half a million people on minimum wage are being underpaid

Martin Lewis - the founder of Money Saving Expert (MSE) - says that half a million people on minimum wage in the UK are being underpaid. He has issued a guide to help people check and claim back the money they are owed, Wales Online reports.

The UK minimum wage increased on April 1, rising by 6.6 per cent for those aged 23 and over, from £8.91 per hour to £9.50 hour. 21-22-year-olds saw their pay rise by 9.8 per cent to £9.18 per hour. All other rates of the National Minimum Wage also increased, as can be seen in the table below.

Martin Lewis and the MSE website, however, say that "many who think they are on minimum wage are in reality actually being paid less than they should". The Low Pay Commission (LPC) - an independent body that advises the government about the National Living Wage and the National Minimum Wage - believes this could be almost half a million people.

The MSE website has highlighted 8 ways minimum wage workers may be getting underpaid without realising it. These include

• Having to buy uniform or safety equipment
• Not being paid for overtime, training time, travelling time and waiting time
• Not getting a pay rise each April and on certain birthdays
• Pay reductions for employer-provided accommodation
• Tips and overtime being used to 'top up' pay
• Being a commission-only worker
• Working for a big firm and assuming they are following the rules
• Workers being paid apprentice rates when they are not apprentices

If you suspect you are being underpaid, MSE suggests you check using the Government's National Minimum Wage and Living Wage calculator for workers here. Once you've checked, MSE advises raising the matter directly with your employer. If you have left the company or want to act anonymously, raise it with the HMRC.

More information can be found on the MSE website. 

At present even those receiving the correct wage are likely to be struggling with rising living costs because, for some, it was a cut in real terms.

When the minimum wage rises were introduced on April 1, LPC chair Bryan Sanderson said that while the National Living Wage increase of 6.6 per cent "gets us back on track to reach the 2024 target of two-thirds of median earnings, it will unfortunately likely be a real-terms cut".

"Though, 21-22 year olds will receive a real-terms increase with a rise of 9.8 per cent. We will soon make this group eligible for the NLW and judged it sensible to close the gap between the rates over a longer period, rather than a very large increase once they become eligible," Mr Sanderson said.

"The Low Pay Commission met with around a hundred representative bodies last year before making its recommendations. We are frequently their main sometimes even their only advocates. With government support we will continue to try to ensure that they do not suffer from the neglect which was so often characteristic of the past."

"Minimum wage workers across the United Kingdom continue to play a vital role in ensuring a strong post-pandemic economic recovery. In previous years the LPC has sought to keep increases to the minimum wage above inflation. However, inflation is now expected to be higher than the forecasts we had when we made our recommendations last October.

"Workers on the minimum wage; care for our elderly and sick, harvest and deliver our food, and do a multitude of other tasks which help us all. Many public sector workers including for example teaching assistants will also shortly be included. They all deserve to be properly remunerated and respected as key members of our society.”

Source: Wales Online

(Links and quotes via original reporting)

Martin Lewis - the founder of Money Saving Expert (MSE) - says that half a million people on minimum wage in the UK are being underpaid. He has issued a guide to help people check and claim back the money they are owed, Wales Online reports.

The UK minimum wage increased on April 1, rising by 6.6 per cent for those aged 23 and over, from £8.91 per hour to £9.50 hour. 21-22-year-olds saw their pay rise by 9.8 per cent to £9.18 per hour. All other rates of the National Minimum Wage also increased, as can be seen in the table below.

Martin Lewis and the MSE website, however, say that "many who think they are on minimum wage are in reality actually being paid less than they should". The Low Pay Commission (LPC) - an independent body that advises the government about the National Living Wage and the National Minimum Wage - believes this could be almost half a million people.

The MSE website has highlighted 8 ways minimum wage workers may be getting underpaid without realising it. These include

• Having to buy uniform or safety equipment
• Not being paid for overtime, training time, travelling time and waiting time
• Not getting a pay rise each April and on certain birthdays
• Pay reductions for employer-provided accommodation
• Tips and overtime being used to 'top up' pay
• Being a commission-only worker
• Working for a big firm and assuming they are following the rules
• Workers being paid apprentice rates when they are not apprentices

If you suspect you are being underpaid, MSE suggests you check using the Government's National Minimum Wage and Living Wage calculator for workers here. Once you've checked, MSE advises raising the matter directly with your employer. If you have left the company or want to act anonymously, raise it with the HMRC.

More information can be found on the MSE website. 

At present even those receiving the correct wage are likely to be struggling with rising living costs because, for some, it was a cut in real terms.

When the minimum wage rises were introduced on April 1, LPC chair Bryan Sanderson said that while the National Living Wage increase of 6.6 per cent "gets us back on track to reach the 2024 target of two-thirds of median earnings, it will unfortunately likely be a real-terms cut".

"Though, 21-22 year olds will receive a real-terms increase with a rise of 9.8 per cent. We will soon make this group eligible for the NLW and judged it sensible to close the gap between the rates over a longer period, rather than a very large increase once they become eligible," Mr Sanderson said.

"The Low Pay Commission met with around a hundred representative bodies last year before making its recommendations. We are frequently their main sometimes even their only advocates. With government support we will continue to try to ensure that they do not suffer from the neglect which was so often characteristic of the past."

"Minimum wage workers across the United Kingdom continue to play a vital role in ensuring a strong post-pandemic economic recovery. In previous years the LPC has sought to keep increases to the minimum wage above inflation. However, inflation is now expected to be higher than the forecasts we had when we made our recommendations last October.

"Workers on the minimum wage; care for our elderly and sick, harvest and deliver our food, and do a multitude of other tasks which help us all. Many public sector workers including for example teaching assistants will also shortly be included. They all deserve to be properly remunerated and respected as key members of our society.”

Source: Wales Online

(Links and quotes via original reporting)